Liquidity Alternative Analyses

Exploring strategic alternatives isn’t just a euphemism for selling a company.  Many of Diamond Capital’s customers have known they want to achieve some liquidity from their investment in their private business, but are not ready to commit to a sale process.  Over the past 40 years, Diamond Capital Advisors and its partners have advised over 3,000 companies regarding the various financial and strategic options available to company owners and management to maximize value and achieve liquidity.  For business owners in this situation, Diamond offers a liquidity alternative analysis to help clarify objectives and evaluate potential transaction scenarios.


Our process is broken down into three broadly defined steps:


The first step in this process is to sit down with shareholders and/or management to identify their objectives, such as:

  • Maximizing value
  • Providing liquidity
  • Maintaining control
  • Minimizing risk
  • Sharing in future value creation
  • Maximizing probability of closing

Once the client identifies their objectives, Diamond matches these with potential strategic alternatives including:

  • Status quo (i.e. execute on current business plan)
  • Sale of 100% of the company
  • Majority sale of the company (equity sale)
  • Minority sale of the company (equity sale)
  • Management buyout (equity sale)
  • Dividend/leveraged recapitalization (possibly no equity sale)
  • Employee Stock Ownership Plan (ESOP)
  • Initial Public Offering
  • Acquisition strategy
  • Liquidation analysis

The final step is to evaluate the company in the context of each one of these alternatives.

  • Discuss, refine and confirm Shareholder/Management Objectives
  • Conduct due diligence and market/industry research
    • Provide valuation guidance and expectations
    • Identify potential buyers (domestic and international)
    • Identify potential financing sources
    • Identify potential acquisition targets
  • Develop transaction analysis models for selected strategic alternatives
  • Assess value outcomes under selected strategic options
  • Structure transaction alternatives
  • Assess timing and likelihood of success of selected alternatives
  • If appropriate, implement one or more alternatives

At the end of a 4 to 6 week process the client will receive a valuation of the business, and a summary of the pros, cons and likelihood of success for each evaluated alternative.

For more information on Diamond Capital’s Liquidity Alternative Analyses, please contact Wayne Platt at or David Herman at or call 310-432-8575